Promoted by pilot questions, our host, Certified Financial Planner™ and GA pilot, Tim Pope compares long-term disability (LTD) coverage for FedEx and UPS pilots, examining how each plan works and how they stack up across the industry. He breaks down union and core benefits, highlighting key differences in duration, tax treatment, monthly caps, waiting periods, and income offsets.

The episode also explores where both carriers fall short compared to passenger airlines, and what cargo pilots should keep in mind heading into contract negotiations.

What You'll Learn from This Episode

• UPS Disability Coverage: Core plan pays 66.7% of income for 10 months after a 6-month wait. Union add-ons are tax-free but capped at $7,500/month.
• FedEx Disability Structure: Core pays 60% for 24 months, then 50% via union coverage to age 65, capped by IRS 401(a)(17) limit.
• Lookback Advantage: FedEx uses the highest 12 of the last 36 months’ pay, protecting recent high earners.
• Offset Clauses: Both reduce benefits for worker’s comp or Social Security. FedEx also offsets if LTD plus side income exceeds prior pay.
• Tax Treatment Differences: Core plans are taxable; union benefits are tax-free due to after-tax premiums.
• What Could Improve: UPS could extend coverage and reduce wait times; FedEx could drop income caps and continue NECs during disability.
• Industry Context: Both lag behind major carriers on LTD duration and NEC continuation, as others move toward 17–18% NECs by 2026.
• Planning Note: Union LTDs and side income help, but knowing your offset rules and caps is critical.

Resources:

Schedule An Appointment
Our Practice’s Website
Send Us Your Questions: info@pilotsportfolio.com

This episode is sponsored by: Beacon Relocation

Beacon Relocation is a real estate firm helping pilots and air traffic controllers save money on their real estate transactions. By tapping into their network of over 1500 real estate agents across the country, pilots can save 20% of the real estate agent’s commission towards your closing cost on the sale or purchase of your home. Visit https://www.beaconrelocation.com/ to learn more.

Timothy P. Pope is a Certified Financial Planner™and principal owner of 360 Aviation Advisors, LLC (“360 Aviation Advisors”), a registered investment advisory firm. Investment advisory services are provided through 360 Aviation Advisors, in its separate and individual capacity as a registered investment adviser. Podcast episodes are provided through Pilot’s Portfolio, in its separate and individual capacity.

We try to provide content that is true and accurate as of the date of publishing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. We assume no responsibility for information contained on this website and disclaim all liability in respect of such information, including but not limited to any liability for errors, inaccuracies, omissions, or misleading or defamatory statements.

Links to external websites are provided solely for your convenience. We accept no liability for any linked sites or their content and remind you that we have no control over their content. When visiting external web sites, users should review those websites’ privacy policies and other terms of use to learn more about, what, why and how they collect and use any personally identifiable information.

Usage of this content constitutes an explicit understanding and acceptance of the terms of this disclaimer.

In this time-sensitive episode, Certified Financial Planner™ and GA pilot Tim Pope unpacks the new Market-Based Cash Balance Plan (MBCBP) for American Airlines pilots ahead of the December 15 opt-in deadline. He explains how the plan captures NEC spillover beyond 401(k) limits, who qualifies, and how it differs from other carriers.

What You'll Learn from This Episode

• Plan Basics: How the MBCBP captures NEC spillover when 401(k) limits are hit—by percentage caps or dollar thresholds.
• Spill Cash Thresholds: When to expect spill cash based on whether you max your 401(k) (key earnings markers: $264k vs. $360k).
• 3-Year Election Window: How American’s election differs from Delta, United, and Southwest—and offers added flexibility.
• Planning Flexibility: When opting out or in may make sense.
• Investment Gaps: Why lack of allocation transparency can hinder holistic planning with outside advisors.
• 401(k) vs. MBCBP: Key differences in investment control, Roth conversion flexibility, and contribution mechanics.
• Creditor & Beneficiary Rules: Features that are consistent between this plan and your 401(k).
• Roth Strategy Fit: How the MBCBP can indirectly support Roth conversions by freeing up tax-free shelf-space elsewhere.
• Use Case Thinking: This plan isn’t good or bad—it’s a tool that must align with your financial phase.
• Deadline Reminder: Election closes December 15, 2025—locked in (or out) for three years.

Resources:

Schedule An Appointment
Our Practice’s Website
Send Us Your Questions: info@pilotsportfolio.com

This episode is sponsored by: Beacon Relocation

Beacon Relocation is a real estate firm helping pilots and air traffic controllers save money on their real estate transactions. By tapping into their network of over 1500 real estate agents across the country, pilots can save 20% of the real estate agent’s commission towards your closing cost on the sale or purchase of your home. Visit https://www.beaconrelocation.com/ to learn more.

Timothy P. Pope is a Certified Financial Planner™and principal owner of 360 Aviation Advisors, LLC (“360 Aviation Advisors”), a registered investment advisory firm. Investment advisory services are provided through 360 Aviation Advisors, in its separate and individual capacity as a registered investment adviser. Podcast episodes are provided through Pilot’s Portfolio, in its separate and individual capacity.

We try to provide content that is true and accurate as of the date of publishing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. We assume no responsibility for information contained on this website and disclaim all liability in respect of such information, including but not limited to any liability for errors, inaccuracies, omissions, or misleading or defamatory statements.

Links to external websites are provided solely for your convenience. We accept no liability for any linked sites or their content and remind you that we have no control over their content. When visiting external web sites, users should review those websites’ privacy policies and other terms of use to learn more about, what, why and how they collect and use any personally identifiable information.

Usage of this content constitutes an explicit understanding and acceptance of the terms of this disclaimer.

In this episode of Pilot’s Portfolio, Certified Financial Planner and GA pilot Tim Pope helps pilots close out the year with clarity and confidence. As 2026 approaches, new tax and retirement contribution rules are set to take effect—and Tim explains what they mean for your paycheque, your savings, and your strategy. From 401(k) and IRA limit increases to the controversial new Roth “catch-up” rule, this episode unpacks how to plan ahead and avoid falling into what Tim calls a “2026 tax grab”.

Tim also encourages reflection on your 2025 financial wins, the goals that didn’t quite land, and what to do differently next year. Whether you’re celebrating a major milestone, planning a move, or eyeing your next savings target, this episode helps you finish the year strong and start 2026 with a smarter plan.

What You'll Learn from This Episode

• How to reflect on 2025’s financial wins and identify what to improve in 2026.
• Which 401(k), IRA, and HSA contribution limits are changing in 2026—and how to plan for them.
• The truth behind the new Roth-only catch-up rule for earners above $145,000.
• How to decide between Roth and pre-tax contributions for tax efficiency.
• The differences between 401(k)s and IRAs—and why each matters for pilots.
• What “super catch-up contributions” mean for those aged 60–63.
• How to use reflection, discipline, and timing to turn frustration into financial advantage.
• Why 2026 may feel like a “tax grab”—and how to stay ahead of it.
  
  

Resources:

Schedule An Appointment
Our Practice’s Website
Send Us Your Questions: info@pilotsportfolio.com

This episode is sponsored by: Beacon Relocation

Beacon Relocation is a real estate firm helping pilots and air traffic controllers save money on their real estate transactions. By tapping into their network of over 1500 real estate agents across the country, pilots can save 20% of the real estate agent’s commission towards your closing cost on the sale or purchase of your home. Visit https://www.beaconrelocation.com/ to learn more.

Timothy P. Pope is a Certified Financial Planner™and principal owner of 360 Aviation Advisors, LLC (“360 Aviation Advisors”), a registered investment advisory firm. Investment advisory services are provided through 360 Aviation Advisors, in its separate and individual capacity as a registered investment adviser. Podcast episodes are provided through Pilot’s Portfolio, in its separate and individual capacity.

We try to provide content that is true and accurate as of the date of publishing; however, we give no assurance or warranty regarding the accuracy, timeliness, or applicability of any of the contents. We assume no responsibility for information contained on this website and disclaim all liability in respect of such information, including but not limited to any liability for errors, inaccuracies, omissions, or misleading or defamatory statements.

Links to external websites are provided solely for your convenience. We accept no liability for any linked sites or their content and remind you that we have no control over their content. When visiting external web sites, users should review those websites’ privacy policies and other terms of use to learn more about, what, why and how they collect and use any personally identifiable information.

Usage of this content constitutes an explicit understanding and acceptance of the terms of this disclaimer.